10-Q 1 mntv-20220630.htm 10-Q 10-Q
http://fasb.org/us-gaap/2021-01-31#PrepaidExpenseAndOtherAssetsCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherAssetsfalseQ22025-10-102018-10-31http://fasb.org/us-gaap/2021-01-31#OtherAssetshttp://fasb.org/us-gaap/2021-01-31#PrepaidExpenseAndOtherAssetsCurrent00017399361--12-310001739936us-gaap:RestrictedStockMember2022-01-012022-06-300001739936mntv:SanMateoFacilityMember2022-05-012022-05-310001739936us-gaap:GeneralAndAdministrativeExpenseMembersrt:ChiefExecutiveOfficerMember2022-01-012022-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:CostOfSalesMember2022-04-012022-06-300001739936us-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300001739936us-gaap:ContractTerminationMember2022-04-012022-06-300001739936us-gaap:RestructuringChargesMember2022-04-012022-06-300001739936mntv:EmployeeStockPurchasePlanMember2022-01-012022-06-300001739936us-gaap:ComputerEquipmentMember2022-06-300001739936us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001739936us-gaap:CommonStockMember2022-03-310001739936us-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-06-300001739936mntv:OneYearPerformancePeriodMemberus-gaap:PerformanceSharesMember2022-03-132022-03-130001739936mntv:EquityIncentivePlansMembermntv:NewHiresMembermntv:TimeBasedAwardsMember2021-04-012021-06-300001739936us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-12-310001739936us-gaap:CommonStockMember2020-12-310001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-01-012022-06-300001739936us-gaap:DomesticLineOfCreditMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2018-10-310001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2021-06-300001739936mntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2022-01-012022-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001739936us-gaap:SalesChannelThroughIntermediaryMember2021-01-012021-06-300001739936us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001739936srt:MinimumMemberus-gaap:PerformanceSharesMember2022-03-132022-03-130001739936us-gaap:DomesticLineOfCreditMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2018-10-012018-10-310001739936us-gaap:CommonStockMember2021-03-310001739936us-gaap:RestructuringChargesMember2021-04-012021-06-300001739936us-gaap:EmployeeStockOptionMember2022-01-012022-06-300001739936us-gaap:SalesChannelDirectlyToConsumerMember2022-04-012022-06-300001739936us-gaap:CommonStockMember2022-04-012022-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300001739936us-gaap:TradeNamesMember2021-12-310001739936mntv:MomentiveGlobalIncMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-01-012022-06-300001739936mntv:MomentiveGlobalIncMember2022-01-012022-06-300001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2022-04-012022-06-300001739936us-gaap:CommonStockMember2021-04-012021-06-300001739936us-gaap:SellingAndMarketingExpenseMember2021-04-012021-06-300001739936us-gaap:RetainedEarningsMember2022-03-310001739936us-gaap:RetainedEarningsMember2021-12-310001739936us-gaap:RestrictedStockMember2022-06-300001739936us-gaap:CustomerRelationshipsMember2022-06-300001739936mntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2022-04-012022-06-300001739936us-gaap:SalesChannelDirectlyToConsumerMember2022-01-012022-06-300001739936us-gaap:SalesChannelThroughIntermediaryMember2021-04-012021-06-300001739936us-gaap:TradeNamesMember2022-06-300001739936mntv:TwoThousandEighteenRefinancingFacilityAgreementMemberus-gaap:SecuredDebtMembermntv:EurocurrencyRateMember2018-10-012018-10-310001739936us-gaap:SalesChannelThroughIntermediaryMember2022-04-012022-06-300001739936us-gaap:DomesticLineOfCreditMembersrt:MinimumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMembermntv:AlternateBaseRateMember2018-10-012018-10-310001739936us-gaap:ComputerEquipmentMember2021-12-310001739936mntv:TwoThousandEighteenRefinancingFacilityAgreementMemberus-gaap:SecuredDebtMember2018-10-310001739936mntv:EquityIncentivePlansMembermntv:NewHiresMembermntv:TimeBasedAwardsMember2021-01-012021-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001739936us-gaap:ResearchAndDevelopmentExpenseMember2022-04-012022-06-300001739936us-gaap:RestructuringChargesMember2021-01-012021-06-300001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2021-01-012021-06-300001739936mntv:EquityIncentivePlansMembermntv:ExistingEmployeesMembermntv:TimeBasedAwardsMember2022-01-012022-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-04-012022-06-300001739936country:US2021-01-012021-06-300001739936srt:MaximumMemberus-gaap:PerformanceSharesMember2022-03-132022-03-130001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:ResearchAndDevelopmentExpenseMember2022-01-012022-06-300001739936us-gaap:RestrictedStockMember2021-12-310001739936us-gaap:RetainedEarningsMember2021-04-012021-06-300001739936mntv:FurnitureFixturesAndOtherAssetsMember2022-06-300001739936us-gaap:RetainedEarningsMember2020-12-310001739936us-gaap:RetainedEarningsMember2021-06-300001739936us-gaap:ContractTerminationMember2022-01-012022-06-300001739936us-gaap:AdditionalPaidInCapitalMember2020-12-310001739936us-gaap:RetainedEarningsMember2021-01-012021-06-300001739936country:US2021-04-012021-06-300001739936mntv:TwoThousandEighteenRefinancingFacilityAgreementMember2021-12-3100017399362021-06-300001739936us-gaap:SecuredDebtMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMembermntv:AlternateBaseRateMember2018-10-012018-10-310001739936us-gaap:CostOfSalesMember2022-04-012022-06-300001739936us-gaap:CommonStockMember2021-12-310001739936us-gaap:RetainedEarningsMember2021-03-310001739936mntv:TwoYearPerformancePeriodMemberus-gaap:PerformanceSharesMember2022-03-132022-03-130001739936us-gaap:ResearchAndDevelopmentExpenseMember2021-04-012021-06-300001739936mntv:ThreeYearPerformancePeriodMemberus-gaap:PerformanceSharesMember2022-03-132022-03-1300017399362022-01-012022-06-300001739936us-gaap:AdditionalPaidInCapitalMember2021-06-300001739936us-gaap:AdditionalPaidInCapitalMember2022-03-310001739936us-gaap:AdditionalPaidInCapitalMember2021-03-310001739936mntv:AcquisitionIntangibleAssetsNetMember2022-06-300001739936us-gaap:SalesChannelThroughIntermediaryMember2022-01-012022-06-300001739936us-gaap:SalesChannelDirectlyToConsumerMember2021-04-012021-06-300001739936us-gaap:AdditionalPaidInCapitalMember2021-12-310001739936mntv:EmployeeStockPurchasePlanMember2022-06-300001739936us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-06-300001739936srt:MaximumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2021-12-310001739936us-gaap:RestrictedStockUnitsRSUMember2022-06-3000017399362022-07-290001739936us-gaap:SellingAndMarketingExpenseMember2021-01-012021-06-300001739936us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-03-310001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:NonUsMemberus-gaap:SalesRevenueNetMember2021-04-012021-06-300001739936us-gaap:AdditionalPaidInCapitalMember2022-06-3000017399362021-01-012021-12-310001739936us-gaap:RestrictedStockMember2021-01-012021-12-310001739936srt:MinimumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2021-12-310001739936mntv:TwoThousandEighteenRefinancingFacilityAgreementMember2022-03-022022-03-020001739936us-gaap:RetainedEarningsMember2022-06-300001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2021-04-012021-06-300001739936us-gaap:GeneralAndAdministrativeExpenseMembersrt:ChiefExecutiveOfficerMember2022-04-012022-06-300001739936us-gaap:RestrictedStockUnitsRSUMember2021-12-310001739936mntv:CapitalizedInternalUseSoftwareNetMember2022-06-3000017399362022-06-300001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2022-01-012022-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:SellingAndMarketingExpenseMember2022-01-012022-06-300001739936mntv:TwoThousandEighteenRefinancingFacilityAgreementMember2022-06-3000017399362020-12-310001739936mntv:EquityIncentivePlansMembersrt:MaximumMember2022-01-012022-06-300001739936mntv:FurnitureFixturesAndOtherAssetsMember2021-12-310001739936us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001739936us-gaap:CostOfSalesMember2021-01-012021-06-300001739936us-gaap:RestructuringChargesMember2022-01-012022-06-300001739936us-gaap:CommonStockMember2021-01-012021-06-300001739936us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001739936country:US2022-01-012022-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2022-06-300001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEquityIncentivePlanMember2022-06-300001739936us-gaap:SellingAndMarketingExpenseMember2022-01-012022-06-300001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2022-04-012022-06-300001739936us-gaap:ResearchAndDevelopmentExpenseMember2021-01-012021-06-300001739936us-gaap:LeaseholdImprovementsMember2022-06-300001739936us-gaap:CostOfSalesMember2021-04-012021-06-300001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:NonUsMemberus-gaap:SalesRevenueNetMember2022-04-012022-06-3000017399362021-12-3100017399362022-03-310001739936us-gaap:TechnologyBasedIntangibleAssetsMember2022-06-300001739936us-gaap:DomesticLineOfCreditMembersrt:MaximumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMembermntv:AlternateBaseRateMember2018-10-012018-10-310001739936srt:MaximumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2022-06-300001739936us-gaap:CustomerRelationshipsMember2021-12-3100017399362022-07-012022-06-300001739936mntv:EquityIncentivePlansMembermntv:NewHiresMembermntv:TimeBasedAwardsMember2022-01-012022-06-300001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:SalesRevenueNetMembercountry:US2021-04-012021-06-300001739936mntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2021-04-012021-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001739936us-gaap:RetainedEarningsMember2022-01-012022-06-3000017399362022-04-012022-06-300001739936srt:MinimumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2022-06-3000017399362021-04-012021-06-300001739936us-gaap:CommonStockMember2022-02-260001739936us-gaap:CommonStockMember2021-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001739936us-gaap:CommonStockMember2022-01-012022-06-300001739936mntv:CapitalizedInternalUseSoftwareNetInDevelopmentPhaseMember2022-06-300001739936mntv:MomentiveGlobalIncMember2022-04-012022-06-300001739936mntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2021-01-012021-06-300001739936us-gaap:GeneralAndAdministrativeExpenseMember2021-01-012021-06-300001739936us-gaap:RestrictedStockUnitsRSUMember2022-01-012022-06-300001739936us-gaap:SecuredDebtMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMember2018-10-012018-10-3100017399362021-01-012021-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:SellingAndMarketingExpenseMember2022-04-012022-06-300001739936us-gaap:EmployeeStockOptionMember2022-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:CostOfSalesMember2022-01-012022-06-300001739936us-gaap:RetainedEarningsMember2022-04-012022-06-300001739936us-gaap:SalesChannelDirectlyToConsumerMember2021-01-012021-06-300001739936us-gaap:CommonStockMember2022-06-300001739936country:US2022-04-012022-06-3000017399362021-03-310001739936us-gaap:CostOfSalesMember2022-01-012022-06-300001739936us-gaap:LeaseholdImprovementsMember2021-12-310001739936us-gaap:TechnologyBasedIntangibleAssetsMember2021-12-310001739936us-gaap:SellingAndMarketingExpenseMember2022-04-012022-06-300001739936mntv:MomentiveGlobalIncMemberus-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:NonUsMemberus-gaap:SalesRevenueNetMember2021-01-012021-06-300001739936us-gaap:CommonStockMembermntv:TwoThousandEighteenEmployeesStockPurchasePlanMember2021-01-012021-06-300001739936us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001739936us-gaap:DomesticLineOfCreditMembersrt:MaximumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMembermntv:EurocurrencyRateMember2018-10-012018-10-310001739936us-gaap:DomesticLineOfCreditMembersrt:MinimumMembermntv:TwoThousandEighteenRefinancingFacilityAgreementMembermntv:EurocurrencyRateMember2018-10-012018-10-310001739936us-gaap:GeographicConcentrationRiskMemberus-gaap:NonUsMemberus-gaap:SalesRevenueNetMember2022-01-012022-06-300001739936mntv:EquityIncentivePlansMembermntv:NewHiresMembermntv:TimeBasedAwardsMember2022-04-012022-06-300001739936mntv:TwoThousandEighteenRefinancingFacilityAgreementMember2022-01-012022-06-300001739936us-gaap:GeneralAndAdministrativeExpenseMember2022-04-012022-06-300001739936mntv:SanMateoFacilityMember2022-06-300001739936us-gaap:AdditionalPaidInCapitalMember2022-01-012022-06-30mntv:Segmentxbrli:pureiso4217:USDxbrli:sharesmntv:Productxbrli:sharesmntv:Offering_periodiso4217:USD

 

f

ac

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission File Number: 001-38664

 

img183559051_0.jpg 

Momentive Global Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

80-0765058

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

One Curiosity Way

San Mateo, California, 94403

(650) 543-8400

(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value
$0.00001 per share

MNTV

The Nasdaq Stock Market LLC

(The Nasdaq Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

 

 

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

The number of shares of registrant’s common stock outstanding as of July 29, 2022 was: 147,615,822.

 

 


 

Momentive Global Inc.

Quarterly Report on Form 10-Q

For the quarterly period ended June 30, 2022

TABLE OF CONTENTS

 

 

 

 

Page

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

Item 1.

Condensed Consolidated Financial Statements (unaudited)

 

4

 

Condensed Consolidated Balance Sheets

 

4

 

Condensed Consolidated Statements of Operations

 

5

 

Condensed Consolidated Statements of Comprehensive Loss

 

6

 

Condensed Consolidated Statements of Stockholders’ Equity

 

7

 

Condensed Consolidated Statements of Cash Flows

 

8

 

Notes to Condensed Consolidated Financial Statements

 

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

38

Item 4.

Controls and Procedures

 

39

 

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

Item 1.

Legal Proceedings

 

40

Item 1A.

Risk Factors

 

40

Item 2.

Unregistered Sales of Equity Securities

 

73

Item 6.

Exhibits

 

74

 

Signatures

 

 

 

1


 

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “would,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

our ability to attract new users or convert registered users to paying users;
our ability to retain paying users;
our ability to convert organizations who purchase solely through our self-serve channel to sales-assisted relationships;
our ability to maintain and improve our products, including our enterprise-grade product offerings;
our ability to upsell and cross-sell within our existing customer and user base;
our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, capital expenditures and paying users;
possible harm caused by significant disruption of service or loss or unauthorized access to users’ data;
our expectations regarding the potential impacts on our business and real estate needs of the COVID-19 pandemic and related public health measures;
the effect of general economic and political conditions, including inflation and Russia’s invasion of Ukraine;
our ability to prevent serious errors or defects in our products;
our ability to respond to rapid technological changes;
our ability to compete successfully;
our ability to protect our brand and risks related to our rebranding;
the demand for our survey platform or for survey software solutions in general;
our expectations and management of future growth;
our ability to accelerate growth with the introduction and scaling of a significant outbound salesforce;
our ability to attract large organizations as users;
our ability to attract and retain key personnel and highly qualified personnel;
our ability to manage our international expansion;
our ability to obtain adequate commercial space as our workforce grows;
our ability to maintain, protect and enhance our intellectual property;
our ability to effectively integrate our products and solutions with others;
our ability to achieve or maintain profitability;
our ability to successfully implement any restructuring of our operations;
our ability to manage our outstanding indebtedness;
our ability to manage trading activity under our stock repurchase program;
our ability to successfully identify, acquire and integrate companies and assets; and
our ability to offer high-quality customer support.

2


 

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

3


 

PART I — FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

MOMENTIVE GLOBAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

 

(in thousands, except par value)

 

June 30, 2022

 

December 31, 2021

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

209,447

 

$

305,525

 

Accounts receivable, net of allowance of $1,400 and $894

 

 

33,140

 

 

32,489

 

Deferred commissions, current

 

 

9,173

 

 

7,945

 

Prepaid expenses and other current assets

 

 

15,380

 

 

11,363

 

Total current assets

 

 

267,140

 

 

357,322

 

Property and equipment, net

 

 

2,090

 

 

5,442

 

Operating lease right-of-use assets

 

 

35,020

 

 

52,232

 

Capitalized internal-use software, net

 

 

29,101

 

 

28,158

 

Acquisition intangible assets, net

 

 

6,583

 

 

10,773

 

Goodwill

 

 

458,596

 

 

463,736

 

Deferred commissions, non-current

 

 

14,717

 

 

13,200

 

Other assets

 

 

8,271

 

 

9,061

 

Total assets

 

$

821,518

 

$

939,924

 

Liabilities and stockholders’ equity

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

9,949

 

$

7,204

 

Accrued expenses and other current liabilities

 

 

24,129

 

 

30,725

 

Accrued compensation

 

 

44,889

 

 

45,873

 

Deferred revenue, current

 

 

218,379

 

 

200,658

 

Operating lease liabilities, current

 

 

8,157

 

 

9,587

 

Debt, current

 

 

1,900

 

 

1,900

 

Total current liabilities

 

 

307,403

 

 

295,947

 

Deferred revenue, non-current

 

 

837

 

 

1,165

 

Deferred tax liabilities

 

 

6,095

 

 

5,701

 

Debt, non-current

 

 

183,866

 

 

209,816

 

Operating lease liabilities, non-current

 

 

43,261

 

 

66,938

 

Other non-current liabilities

 

 

5,780

 

 

5,883

 

Total liabilities

 

 

547,242

 

 

585,450

 

Commitments and contingencies (Note 11)

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Preferred stock ($0.00001 par value; 100,000 shares authorized; no shares issued and outstanding)

 

 

 

 

 

Common stock ($0.00001 par value; 800,000 shares authorized; 149,233 and 150,398 shares issued and outstanding)

 

 

1

 

 

2

 

Additional paid-in capital

 

 

961,978

 

 

971,604

 

Accumulated other comprehensive income (loss)

 

 

(4,229

)

 

414

 

Accumulated deficit

 

 

(683,474

)

 

(617,546

)

Total stockholders’ equity

 

 

274,276

 

 

354,474

 

Total liabilities and stockholders’ equity

 

$

821,518

 

$

939,924

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

4


 

MOMENTIVE GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

(in thousands, except per share amounts)

 

2022

 

2021

 

2022

 

2021

 

Revenue

 

$

120,163

 

$

109,392

 

$

237,149

 

$

211,690

 

Cost of revenue(1)(2)(3)

 

 

22,491

 

 

21,688

 

 

45,394

 

 

42,460

 

Gross profit

 

 

97,672

 

 

87,704

 

 

191,755

 

 

169,230

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Research and development(1)(3)

 

 

35,630

 

 

34,225

 

 

72,346

 

 

67,208

 

Sales and marketing (1)(2)(3)

 

 

61,298

 

 

56,025

 

 

120,934

 

 

108,061

 

General and administrative(1)(3)

 

 

29,537

 

 

24,170

 

 

57,454

 

 

47,492

 

Restructuring(1)(2)

 

 

(3,323

)

 

 

 

1,560

 

 

 

Total operating expenses

 

 

123,142

 

 

114,420

 

 

252,294

 

 

222,761

 

Loss from operations

 

 

(25,470

)

 

(26,716

)

 

(60,539

)

 

(53,531

)

Interest expense

 

 

2,378

 

 

2,304

 

 

4,604

 

 

4,603

 

Other non-operating (income) expense, net

 

 

63

 

 

(119

)

 

(71

)

 

196

 

Loss before income taxes

 

 

(27,911

)

 

(28,901

)

 

(65,072

)

 

(58,330

)

Provision for income taxes

 

 

640

 

 

336

 

 

856

 

 

554

 

Net loss

 

$

(28,551

)

$

(29,237

)

$

(65,928

)

$

(58,884

)

Net loss per share, basic and diluted

 

$

(0.19

)

$

(0.20

)

$

(0.44

)

$

(0.40

)

Weighted-average shares used in computing basic and diluted net loss per share

 

 

148,646

 

 

146,242

 

 

149,454

 

 

145,467

 

 

(1) Includes stock-based compensation, net of amounts capitalized as follows:

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

(in thousands)

 

2022

 

2021

 

2022

 

2021

 

Cost of revenue

 

$

1,624

 

$

1,580

 

$

3,033

 

$

3,062

 

Research and development

 

 

8,703

 

 

10,313

 

 

17,347

 

 

19,810

 

Sales and marketing

 

 

6,358

 

 

6,414

 

 

12,423

 

 

12,192

 

General and administrative

 

 

8,905

 

 

7,266

 

 

16,280

 

 

14,108

 

Restructuring

 

 

 

 

 

 

2,761

 

 

 

Stock-based compensation, net of amounts capitalized

 

$

25,590

 

$

25,573

 

$

51,844

 

$

49,172

 

 

(2) Includes amortization of acquisition intangible assets as follows:

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

(in thousands)

 

2022

 

2021

 

2022

 

2021

 

Cost of revenue

 

$

492

 

$

1,477

 

$

1,906

 

$

2,967

 

Sales and marketing

 

 

635

 

 

1,117

 

 

2,087

 

 

2,250

 

Restructuring

 

 

135

 

 

 

 

180

 

 

 

Amortization of acquisition intangible assets

 

$

1,262

 

$

2,594

 

$

4,173

 

$

5,217

 

 

(3) Includes transaction expenses associated with the terminated merger with Zendesk. See Note 1 for additional information.

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

5


 

MOMENTIVE GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited)

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

(in thousands)

 

2022

 

2021

 

2022

 

2021

 

Net loss

 

$

(28,551

)

$

(29,237

)

$

(65,928

)

$

(58,884

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

Foreign currency translation gains (losses)(1)

 

 

(3,696

)

 

1,091

 

 

(4,643

)

 

(1,862

)

Total other comprehensive income (loss)(1)

 

 

(3,696

)

 

1,091

 

 

(4,643

)

 

(1,862

)

Total comprehensive loss

 

$

(32,247

)

$

(28,146

)

$

(70,571

)

$

(60,746

)

 

(1) Net of tax effect which was not material.

See accompanying Notes to Condensed Consolidated Financial Statements.

 

6


 

MOMENTIVE GLOBAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (unaudited)

For the three months ended June 30, 2022

 

 

Common Stock

 

 

 

 

 

 

 

 

 

(in thousands)

 

Shares

 

Amount

 

Additional Paid-In Capital

 

Accumulated Other Comprehensive loss

 

Accumulated Deficit

 

Total Stockholders’ Equity

 

March 31, 2022

 

 

150,420

 

$

2

 

$

964,474

 

$

(533

)

$

(654,923

)

$

309,020

 

Common stock issued upon vesting of restricted stock units

 

 

1,071

 

 

 

 

 

 

 

 

 

 

 

Common stock issued upon stock option exercise

 

 

42

 

 

 

 

554

 

 

 

 

 

 

554

 

Common stock issued under employee stock purchase plan

 

 

268

 

 

 

 

2,751

 

 

 

 

 

 

2,751

 

Repurchases of common stock

 

 

(2,568

)

 

(1

)

 

(32,120

)

 

 

 

 

 

(32,121

)

Stock-based compensation expense

 

 

 

 

 

 

26,319

 

 

 

 

 

 

26,319

 

Comprehensive loss

 

 

 

 

 

 

 

 

(3,696

)

 

 

 

(3,696

)

Net loss

 

 

 

 

 

 

 

 

 

 

(28,551

)

 

(28,551

)

June 30, 2022

 

 

149,233

 

$

1

 

$

961,978

 

$

(4,229

)

$

(683,474

)

$

274,276

 

For the three months ended June 30, 2021

 

 

Common Stock

 

 

 

 

 

 

 

 

 

(in thousands)

 

Shares

 

Amount

 

Additional Paid-In Capital

 

Accumulated Other Comprehensive Income

 

Accumulated Deficit

 

Total Stockholders’ Equity

 

March 31, 2021

 

 

145,638

 

$

1

 

$

869,174

 

$

2,255

 

$

(523,944

)

$

347,486

 

Common stock issued upon vesting of restricted stock units

 

 

1,026

 

 

 

 

 

 

 

 

 

 

 

Common stock issued upon stock option exercise

 

 

588

 

 

 

 

8,186

 

 

 

 

 

 

8,186

 

Common stock issued under employee stock purchase plan

 

 

246

 

 

 

 

3,873

 

 

 

 

 

 

3,873

 

Stock-based compensation expense

 

 

 

 

 

 

26,150

 

 

 

 

 

 

26,150

 

Comprehensive income

 

 

 

 

 

 

 

 

1,091

 

 

 

 

1,091

 

Net loss

 

 

 

 

 

 

 

 

 

 

(29,237

)

 

(29,237

)

June 30, 2021

 

 

147,498

 

$

1

 

$

907,383

 

$

3,346

 

$

(553,181

)

$

357,549

 

For the six months ended June 30, 2022

 

 

Common Stock

 

 

 

 

 

 

 

 

 

(in thousands)

 

Shares

 

Amount

 

Additional Paid-In Capital

 

Accumulated Other Comprehensive Income (Loss)

 

Accumulated Deficit

 

Total Stockholders’ Equity

 

December 31, 2021

 

 

150,398

 

$

2

 

$

971,604

 

$

414

 

$

(617,546

)

$

354,474

 

Common stock issued upon vesting of restricted stock units

 

 

1,948

 

 

 

 

 

 

 

 

 

 

 

Common stock issued upon stock option exercise

 

 

206

 

 

 

 

2,827

 

 

 

 

 

 

2,827

 

Common stock issued under employee stock purchase plan

 

 

268

 

 

 

 

2,751

 

 

 

 

 

 

2,751

 

Issuance of restricted stock awards

 

 

1,031

 

 

 

 

 

 

 

 

 

 

 

Issuance of performance stock awards

 

 

361

 

 

 

 

 

 

 

 

 

 

 

Repurchases of common stock

 

 

(4,979

)

 

(1

)

 

(68,496

)

 

 

 

 

 

(68,497

)

Stock-based compensation expense

 

 

 

 

 

 

53,292

 

 

 

 

 

 

53,292

 

Comprehensive loss

 

 

 

 

 

 

 

 

(4,643

)

 

 

 

(4,643

)

Net loss

 

 

 

 

 

 

 

 

 

 

(65,928

)

 

(65,928

)

June 30, 2022

 

 

149,233

 

$

1

 

$

961,978

 

$

(4,229

)

$

(683,474

)

$

274,276

 

For the six months ended June 30, 2021

 

 

Common Stock

 

 

 

 

 

 

 

 

 

(in thousands)

 

Shares

 

Amount

 

Additional Paid-In Capital

 

Accumulated Other Comprehensive Income (Loss)

 

Accumulated Deficit

 

Total Stockholders’ Equity

 

December 31, 2020

 

 

143,820

 

$

1

 

$

835,444

 

$

5,208

 

$

(494,297

)

$

346,356

 

Common stock issued upon vesting of restricted stock units

 

 

1,993

 

 

 

 

 

 

 

 

 

 

 

Common stock issued upon stock option exercise

 

 

1,229

 

 

 

 

17,758

 

 

 

 

 

 

17,758

 

Common stock issued under employee stock purchase plan

 

 

246

 

 

 

 

3,873

 

 

 

 

 

 

3,873

 

Issuance of restricted stock awards

 

 

274

 

 

 

 

 

 

 

 

 

 

 

Cancellation of restricted stock awards

 

 

(64

)